Cryptocurrency lending is something every user is hesitant of, but it is still one of the ways to earn money in a short period of time.
The issue circulating with crypto-lending is when it comes to repayment, people do not know how to trust each other.
There’s your answer. ETHLend is a cryptocurrency lending application, that functions on the Ethereum network. It is accessible through MetaMask, a plugin that works as a connection between the Ethereum network and your web browser.
From now onwards, users can lend Ether without the risk of loss of capital as it ensures secure lending. Also, lenders can browse through loan requests on the EthLend website, then pick the borrower of their choice.
- The borrower will issue a loan request.
- The loan request creates a Smart Contract on the Ethereum Blockchain.
- Insert the required data such as the loan amount, the premium (interest rate) and time to borrow.
- The borrower then inserts the Digital Token address and the number of tokens that are used as a collateral.
- After all the data is set, the borrower then transfers the Digital Tokens to the Smart Contract. Now, lenders can fund the loan.
What Happens If The Borrower Doesn’t Repay The Loan On Time?
When the borrower is unable to repay the loan, the Smart Contract transfers the digital tokens to the lender’s Ethereum address. It is up to the lender, whether they want to hold onto or sell the digital tokens.
The decentralized model and the use of cryptocurrency is the proper solution to achieve ETHLend’s goal. It aims to provide a global liquidity pool between people, which means that any borrower in the US isn’t limited to the US alone and can access funding from all across the world, like Asia and Europe.
What Are EthLend Fees?
EthLend deducts around 0.01 fee for every loan request and funding of a loan. The fees will finance the further improvements on the Ethereum platform.
What Cryptocurrencies Can I Borrow And Lend?
To begin with, Ether lending is available, since the application runs on Ethereum network. Later on, other cryptocurrencies like Bitcoin, Litecoin etc. will be included.
Why the Ethereum Network?
Ethereum consists of Smart Contracts, that allows to perform complex transactions such as and lending and handling the collateral. No one can stop you from lending or borrowing, not even ETHLend. Fortunately, ETHLend has the ability to borrow in locations where there are no banks in sight. All transactions are visible, so you can easily keep track of what is happening.
The focus is to expand their user-base and explore their boundaries while ensuring that their procedure remains as simple as possible. ETHLend is also including additional features like language options and ways to calculate the value of the collateral, to avoid unnecessary loan requests in the future. Its team is located all over the world but, initially work towards the same goal, to provide a fair and secure lending/borrowing platform. Ultimately, aiming to become the largest lending market on a global scale.